Dragni Dragnev

TapImmune Inc. (OTCMKTS:TPIV) Stumbles Once More

by Dragni Dragnev April 7, 2016

TapImmune Inc. (OTCMKTS:TPIV, TPIV message board) presents investors with an interesting instance of duality – which is exactly the reason why the ticker is so unstable all the time.

On one hand, TPIV is one of the very few OTC Markets pharmaceutical companies that get things done. Unlike so many other companies in the branch, it actually has some serious scientific achievements under its belt, and clearing stage one of the clinical trials for two of its products is something that very few other companies in the respective tier of the OTC Markets can boast.

As we all know, medical research is expensive – however, last time we checked TPIV seemed to have the funds to go forward with its business for a while yet. After all, $6 million in cash is nothing to sneer at.

So far – so good, but this is only one side of the coin we've looked at so far – and the other one isn't nearly as shiny. How so?

Well, suffice it to say that whatever investor value the company's scientific achievements and steps toward commercial success create, immediately is smothered by its tendency to issue cheap toxic promissory notes and warrants for the purchase of common shares.

A significant portion of said $6 million worth of funding for TPIV's was acquired through the issuance of convertibles that can be turned into shares at ridiculously low prices.

A quick check reveals that 44 out of the 64 million shares of the company's common stock outstanding as of November 2015 were issued during 2015's previous months. At least 12.3 million of those shares were sold as part of two private placements at prices of just $0.2 per share.

Private placements have also seen to the issuance of various warrants for the purchase of Series B, C, D & E with fair adjusted fair value of $2.5 million, which can be exercised at prices varying from $0.1 to $0.5 per share.

This is why TPIV is so unstable – there are just too many factors pulling it every which way for it to be consistent. Now, admittedly that may change with the upcoming 10-K report, whose filing was delayed. Investors should be on the lookout for that one, as once it hits the web, the information it it will probably dictate the ticker's route on the charts – for the next few sessions at least.

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